Eighty-five cents per gallon.
That was the greatest observed difference in gasoline prices between Orcas Island stations and the mainland when the Islands’ Sounder checked prices on July 27.
Prices of $4.41 at Country Corner and Crescent Beach stations, and $4.34 at Island Hardware and Supply were compared with low-end mainland prices of $3.56 at Burlington’s Fred Meyer, $3.58 at Everett’s Costco and $3.66 at the Chevron on Anacortes’ Casino Drive (mainland prices reported by GasBuddy.com.)
At those prices, and based on an average 16 gallon fill-up for a mid-sized vehicle, islanders would pay $13.60 more per tank.
Why the added cost?
“Shipping is the biggest factor,” said Jim Schuman, owner of Island Petroleum.
Island Petroleum supplies Island Hardware and Supply, Roche Harbor Marina, the Friday Harbor Marina, and a direct outlet on San Juan Island.
“We have to take a 70-foot-long truck and trailer on the ferry, get it loaded, and then we have to hire a barge to get it back,” Schuman said.
Federal regulations allow, at most, 12 gallons of gasoline or 100 pounds “water weight” of propane per vehicle on board the ferries.
Gasoline tanker trucks are allowed only on vessels carrying fewer than 25 passengers. The Hyak can carry 2,000 people and the Elwha can take 1,076.
Because diesel is combustible rather than flammable like gasoline, full diesel tankers are allowed on ferries.
Ferries safety officer Manny Perez cited potential damage to the marine environment, a high concentration of passengers in a small space and limited firefighting equipment on board vessels as reasons behind the laws.
“When customers come on board our vessel, they’re essentially laying their trust for their life on the master of the vessel,” said Perez. “They (masters) take that responsibility very, very seriously.”
A peak season Orcas to Anacortes ferry ticket for a 70-foot long vehicle costs $362.40. Those riding at least twice per week can purchase prioritized loading for an extra $200 per quarter.
Empty gasoline trucks must be treated and inspected before they can board the ferry.
“If you get a tanker truck filled with vapor, you can get a lot of people killed,” Perez said.
Propane trucks must be barged both ways, as it is cost-prohibitive to clean them to WSDOT requirements.
Schuman said that while many mainland companies can pick up a load of fuel in about an hour, island companies must foot the bill for a 10- to 12-hour day for just one round trip.
Volume and infrastructure
“The other part is, we just don’t have the volume that the mainland does,” Schuman said.
While selling a lower volume, island companies must still purchase similar infrastructure, if not more. For example, Island Petroleum keeps three truck and trailer gigs on hand, because each set is tied up all day for just one fuel pickup, and some days two loads are needed.
“On the mainland we could get by with one truck very easily,” Schuman said.
Gas distributors must also pay for annual inspections, licensing, registration and insurance. Additional driving factors are the higher cost of doing business in the islands and higher property taxes.
Other major players in the San Juans: Interisland Petroleum supplies both Country Corner and the Crescent Beach Shell station. On San Juan Island, The Big Store and The Little Store are supplied by Petro San Juan. Both suppliers declined to comment for this story.
Gas prices higher than last year state-wide
To compound the problem, gas prices are significantly higher than they were last summer. www.Gasbuddy.com, which tracks prices at more than 125,000 gas stations in the U.S. and Canada, reports that prices for gasoline in Washington state on July 25 were 77.9 cents per gallon higher than the same day one year ago.
